Executive summary In the report below, there are outlined ways that an organisation such as Richmond could benefitfrom the concept of diversification. The company could promote all its building designs. The management should seek ways to ensure all sectors realise their full potential. With a good diversification program, the company could run all activities and manage to realise the maximum profits. The report establishes methods that the management of each sector in the company could benefit from practicing. The objective of the report is to show that Richmond company could benefit from a diversification programme in the company.
First the report found areas in the company that could benefit from diversification methods. The report studies research material on the use of methods of diversification in other companies. It gives examples of diversification methods, which became useful in their respective companies. There will be a recommendation of the best methods, which are similar to the proposed ones in Richmond company. From the study, there is evidence that a prepared staff, doing research in areas of design investment, and a manager who is patient and open to consultation, the company could diversify and achieve its full potential.
Changes in the managerial skills could assist in the process. The company would persevere training fees for all managers to at all level. They will need to pay additional employees as the company will need to hire specialized employees. Thus, it will enable the employees master only their design of interest and improve on their quality. Trained manager in every sector will know the right methods to use in running the company.
In addition, they would learn new ideas on handling service marketing. Despite the cost that the company would incur for several months, it would be a benefit to the company. There would be increased market for the services offered by Richmond. Introduction Richmond has several services in building designs among others. All these designs have been dominant in the market but not to their maximum potential. After some point, most building designs become unpopular before it is completely exhausted. Managing design services could be tedious making some not to sell amicably. The company needs to realise full potential of each sector.
It is the problem of managing all the sectors that gave rise to the establishment of this report. Through training the employees on the new skills, doing research in the respective business areas and having good managerial skills, could assist Richmond company realise a full potential of all its business sectors. There will be graphs that represent the success of the methods of diversification in companies. Background The Richmond company has specialised in development and building of retail designs. The company has developed designs in all residential buildings.
In most areas in Switzerland, the major retail shops have been developed by Richmond. The company can develop other designs of building structures other than retail shops. Most contracts that the company gets in the region are those that deal with retail shop building. The other designs, including real estate, seem not to get much focus. The company has in the past ventured into building other designs in Switzerland (The Richmond Company). However, retail shops took prevalence. Over the years, Richmond has established ways to market its skill in real estate and other designs.
With a slight change in the ideas of diversification previously implemented, Richmond could achieve its objective. If the company trains managers to look over the other company designs, it will improve in performance. Managers need marketing training of the specific designs of the company. They will know how to reach the customers and the manner of convincing them to sign a contract. The employees will have to specialize at building specific results to improve on the quality of the products. Method The report uses study reports on the benefits of the use of training employees and its effect on the quality of work.
There was a record of the number of employees that were selected for training on new relevant skills at work. After the training sessions, there were records of each employees track record of performance at work. The categories in use to monitor the performance of the employees include their efficiency, the level of employee morale, the rate of turnover, number of mistakes and the quality of product delivery. After a period of two months of study, the results of the programme were like in the table below. (Jackson) Most of the employees registered a positive change in their way of work.
A percentage of 81.6 % of the employees managed to produce a better product as compared to the previous ones after the training session. The level of efficiency increased by 64.5% in the employees. At the work place, the employees managed to reduce the number of injuries by 60.5 percent. The employees had a 38.2% increase in work morale. In addition, those who had a lower turnover than before the training were 38.2% of the employee population. The other method was studying the research conducted to show the benefit of marketing in promoting product quality and performance.
In a study to investigate the benefits of doing research on the market of a product, the results were as follows. (Majumdar) The graph demonstrates the results of research that compares the number of sales to the improvement of quality of the product. Research that was conducted to stimulate the product take-up registered the least number of sales.
The research done to improve the quality of goods had a high sale in the market. Theory and Analysis According to Majumdar, researching the market on the need of a product assist in establishing its quality. The company would know the quality that the market favours most and produce. Research will assist the manager prepare his team and know the nature of the market. Jackson et al. , shows that a well trained and skilled team would exploit its maximum potential at work. Training employees is a way that the management could invest in the employees. Discussion Training employees is fundamental for the development of the quality of output.
Work skills need to have a constant update. The management should not assume that if the employee is already a trained professional, he can handle all issues perfectly. Employees need to be reminded and updated on the new methods in the market. The results tabled above indicated a high change in the quality of products, after the training. The experiment proves the theory according to Jackson et al. Research on a product when conducted with an objective in mind, would lead to an improvement on its quality.
Majumdar shows that research should always be conducted to achieve any desirable result. The graph showed that, at late stages of a company, research could be a useful took to decide the way forward of its product. Conclusion and Recommendation Richmond company had an issue of diversifying their services by constructing all building designs. The report was to find the best methods that the company could use to assist in company diversification. From the results discussed above, the report concludes that training employees and conducting research could improve the performance of the company.
Strategically placed measures of management contribute to the production of quality goods and services. Richmond should put these methods of diversification in the company structure. By training employees in their areas of specialization would improve their performance. The designs created after the training session would be of high quality, thereby, attracting additional customers. The company would not have to worry on the performance of other designs. Apart from training the employees, the companies should conduct a research to establish the best designs that the market requires.
It would know the things to include when developing designs of all sectors. thus, all the designs would be marketable. The managers too, need to undergo training. All the managers dealing with marketing should learn the ways of attracting and speaking to managers. Customers are swayed by the convincing power of the agent. The managers need to be open and reachable to any customer who needs help. Interacting with customers is a way of determining what they need to improve when developing the designs. Works Cited Jackson, Susan E, Randall S.
Schuler, and Steve Werner. Managing Human Resources. Mason, Ohio: South Western cengage learning, 2012. Print. Majumdar, Ramanuj. Marking Research: Text, Applications and Case Studies. New Delhi: New Age International (P) Ltd, 1991. Print. The Richmond Company. 2013. 3 April 2014. Print.